Why choose a Bank ‘short-sale’ compared to a H.A.F.A. ‘short-sale’
By Sandy Flores
Special to Excelsior
|Banking institutions are not in the business of real estate. I really do not care that your property is below the actual value. Many of these banks are flooded with hundreds of thousands of properties that are undervalued, and in many cases do not have the resources to continue and increase the cost of administering all these foreclosed properties, this is one of the reasons why which banks will try to find a way to make some arrangement with owners experiencing problems making your payments. The HAFA short sale program, effective from April 5, 2010 until December 31, 2012, promises short sale approval within a short period and gives the homeowner a cash incentive of up to $ 3,000 in cash the closing of the sale. The HAFA, which is the Alternative Program to Avoid Foreclosure, the program is part of President Obama “Affordable Modification Homeowners”, known by its acronym HAMP (Home Affordable Modification Program).
The first step for eligibility HAFA Short Sale is complete the application for Affordable Modification Program for Homeowners (HAMP). To apply to this program homeowners must meet certain requirements such as:
1. The property must be the owner’s principal residence does help request.
2. The mortgage amount must be less than $ 729.750.
3. The borrower suffers difficulties such as loss of income, increased mortgage payment or an unexpected increase of expenses.
4. The mortgage originated before January 1, 2009.
5. The PITI mortgage payment, including HOA, is more than 31 percent of gross monthly income of the borrower.
Also, the owner has to find out if the lender is the loan owner participates in these programs. Fannie Mae and Freddie Mac are the main participants in these programs, and we also have some of the banks also participate in the HAMP / HAFA Short Sale Programs such as the following:
Aurora Loan Services, LLC, American Home Mortgage Servicing, Inc. AMS Servicing, LLC., Bank of America, NA., Carrington Mortgage Services, LLC, Citigroup, Inc. (Citi Mortgage / Citi Residential), EMC Mortgage Corporation / Bear Sterns, First Mortgage Coporation, Flagstar, Franklin Credit Management Corporation, GMAC Mortgage LLC / Homecomings, Guaranty Bank, Green Tree Servicing LLC, Home Eq Servicing, HSBC Mortgage Corporation, JPMorgan Chase Bank, NA, Litton Loan Servicing, Ocwen Financial Corporation, Inc ., OneWest Bank, Saxon Mortgage Services, Select Portfolio Servicing, Specialized Loan Servicing, LLC, SunTrust Mortgage, Inc. and Wells Fargo Bank among others.
Likewise, the HAFA program sets clear deadlines to maintain the efficiency of the process: The mortgage servicers must evaluate homeowners for HAFA within a period of 30 days that meets one of the eligibility requirements.
If the homeowner is eligible, the administrator will send a Short Sale Agreement (Short Sale Agreement, SSA), which is a contract between the homeowner and servicer and will include the following:
A list price approved by the administrator.
The period during which the property is put up for sale.
An agreement to release the homeowner from any future liability, once the property is sold.
The amount of the monthly mortgage payment, if any, that the debtor must pay during the term of the SSA.
About 3,000 in relocation assistance after closing.
An agreement stating that the debtor while acting in accordance with the terms of the SSA, the administrator will not complete the foreclosure sale.
In addition to $ 3,000 in relocation assistance to the borrower the HAFA Awards $ 1,500 to the servers so they can cover the costs of processing, and up to $ 2,000 to investors who allow a total of $ 6.000 distributed for mortgages subordinate to the first mortgage. Also, under this program the bank will require an affidavit stating that there is no link of connection between the homeowner and the buyer of the property.
If you sign this affidavit and adulterous short sale information, you may be held responsible for mortgage fraud.
Mortgage fraud falls under the jurisdiction of the FBI If someone tells you it is okay, make sure to clarify its relationship with the buyer to the bank before closing.
It is important to know that if you are in a financial situation that allows you to continue your mortgage payments, either partial or total you keep in mind that it is important to immediately contact your bank. Do not assume that your problems are corrected quickly, without you doing anything about it.
The Treasury Department of the United States government aims lenders and their customer service agents reach a compromise, urging financial institutions to work aggressively to help borrowers facing financial problems.
Establish direct communication with your bank to discuss your personal financial situation and request the aid repair as soon as you can not make your payments.
It is very important that you gather as much information as you can, before taking a final decision on which of the options would be more assertive for you.
As always, you should consider professional advice to be in a better position to decide on the options that’s best for you in particular.
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